1 00:00:00,000 --> 00:00:00,000 2 00:00:04,940 --> 00:00:07,210 We'll put my mask right here . Do you 3 00:00:07,210 --> 00:00:10,280 have your mask ? Yes . You D'oh ! Okay , 4 00:00:13,300 --> 00:00:17,010 I hope so . Right . Okay . So , 5 00:00:17,020 --> 00:00:19,170 uh , Good morning , ladies and 6 00:00:19,170 --> 00:00:21,281 gentlemen . Actually , good morning , 7 00:00:21,281 --> 00:00:23,630 me lady . Uh , and those that are 8 00:00:23,630 --> 00:00:26,590 dialing in joining us virtually on 9 00:00:26,600 --> 00:00:28,810 defense dot gov this morning Under 10 00:00:28,810 --> 00:00:31,032 Secretary of Defense Ellen Lord is here 11 00:00:31,032 --> 00:00:32,810 to provide an update on how the 12 00:00:32,810 --> 00:00:34,421 department is supporting the 13 00:00:34,421 --> 00:00:36,588 interagency effort to partner with the 14 00:00:36,588 --> 00:00:38,810 defense industry to mitigate cove it 19 15 00:00:38,810 --> 00:00:40,921 impacts . She will provide an opening 16 00:00:40,921 --> 00:00:43,088 statement . Then we will go into Q and 17 00:00:43,088 --> 00:00:45,310 a using the list of reporters that have 18 00:00:45,310 --> 00:00:47,643 dialed in And those in the room , ma'am , 19 00:00:47,643 --> 00:00:49,699 over to you . Thank you , Mike . And 20 00:00:49,699 --> 00:00:51,921 good morning , everyone . Thank you for 21 00:00:51,921 --> 00:00:54,032 joining us today for an update on the 22 00:00:54,032 --> 00:00:55,921 department's continued efforts to 23 00:00:55,921 --> 00:00:59,230 mitigate impacts from Cove in 19 . I 24 00:00:59,230 --> 00:01:02,340 want to start by offering my sincerest 25 00:01:02,340 --> 00:01:05,060 condolences to the families of those 26 00:01:05,060 --> 00:01:07,960 who we have lost to the cove in 19 in 27 00:01:07,960 --> 00:01:11,680 the department , we remain intensely 28 00:01:11,680 --> 00:01:13,624 focused on protecting our military 29 00:01:13,624 --> 00:01:15,958 members and their families . Government , 30 00:01:15,958 --> 00:01:18,080 civilians and the defense contractor 31 00:01:18,080 --> 00:01:21,120 Force especially are 50,000 service 32 00:01:21,120 --> 00:01:24,170 members , which includes 4000 doctors , 33 00:01:24,180 --> 00:01:26,510 nurses and other medical personnel 34 00:01:26,570 --> 00:01:28,750 across all components currently 35 00:01:28,750 --> 00:01:30,750 deployed across the United States , 36 00:01:30,750 --> 00:01:33,530 working tirelessly to help protect the 37 00:01:33,530 --> 00:01:35,950 American people . The department , 38 00:01:35,960 --> 00:01:37,904 particularly the Defense Logistics 39 00:01:37,904 --> 00:01:40,790 Agency , or DeLay , remains closely 40 00:01:40,790 --> 00:01:43,090 coordinated with the military . Service 41 00:01:43,090 --> 00:01:45,370 is toe understand requirements and 42 00:01:45,370 --> 00:01:48,170 priorities to best protect the force . 43 00:01:48,330 --> 00:01:52,100 DeLay has provided over 1.8 million and 44 00:01:52,100 --> 00:01:56,010 95 respirator masks , 3.2 45 00:01:56,010 --> 00:01:59,150 million non medical and surgical masks , 46 00:01:59,540 --> 00:02:02,970 54.8 million exam gloves , 47 00:02:03,300 --> 00:02:06,860 8000 ventilators and 2200 and 48 00:02:06,860 --> 00:02:10,510 75,000 isolation and surgical gowns 49 00:02:10,800 --> 00:02:13,140 To our military service is combatant 50 00:02:13,140 --> 00:02:15,900 commands and several federal agencies . 51 00:02:17,140 --> 00:02:19,480 We have ordered face coverings for the 52 00:02:19,480 --> 00:02:22,500 workforce , three million active duty 53 00:02:22,500 --> 00:02:25,370 guard reserve and government civilians 54 00:02:25,430 --> 00:02:27,890 with delivery starting this week . We 55 00:02:27,890 --> 00:02:31,670 expect 135,000 by the end of April and 56 00:02:31,670 --> 00:02:35,580 580,000 by the end of May . Last 57 00:02:35,580 --> 00:02:38,110 week , Transcom was able to utilize the 58 00:02:38,110 --> 00:02:40,460 Defense Threat Reduction Agency , or 59 00:02:40,460 --> 00:02:43,300 DETRAS Developed Transport Isolation 60 00:02:43,300 --> 00:02:46,660 System , or TOUS , to move three co vit 61 00:02:46,660 --> 00:02:50,110 pas positive patients from Afghanistan 62 00:02:50,110 --> 00:02:52,540 to Germany . This marks the first 63 00:02:52,550 --> 00:02:54,890 operational use of the system that was 64 00:02:54,890 --> 00:02:58,400 developed for the 2014 Ebola crisis , 65 00:02:58,450 --> 00:03:01,640 but never used . Until now . The Joint 66 00:03:01,640 --> 00:03:04,550 Staff Transcom and the Air Force 67 00:03:04,550 --> 00:03:06,720 continue to work to ensure that we can 68 00:03:06,720 --> 00:03:09,880 safely transport cove it . 19 patients 69 00:03:09,970 --> 00:03:12,540 from overseas locations to the United 70 00:03:12,540 --> 00:03:15,200 States . We are absolutely committed to 71 00:03:15,200 --> 00:03:17,311 the safety of the aircrew and medical 72 00:03:17,311 --> 00:03:19,750 support staff drawing these missions . 73 00:03:20,140 --> 00:03:22,650 We just issued a memo that directs 74 00:03:22,650 --> 00:03:25,650 contracting officers to support a U . S 75 00:03:25,650 --> 00:03:29,400 Forces Afghanistan memo to redeploy at 76 00:03:29,410 --> 00:03:31,970 risk contractor employees due to 77 00:03:31,980 --> 00:03:34,370 insufficient medical capability . In 78 00:03:34,370 --> 00:03:36,790 country , we project this number to be 79 00:03:36,790 --> 00:03:39,380 less than 1000 but we're committed to 80 00:03:39,380 --> 00:03:42,850 taking care of them . The department 81 00:03:42,940 --> 00:03:45,780 remains closely aligned with FEMA and H 82 00:03:45,780 --> 00:03:49,590 H s contracting for over $500 million 83 00:03:49,600 --> 00:03:52,200 in lifesaving supplies and equipment to 84 00:03:52,200 --> 00:03:54,600 service members and federal agencies . 85 00:03:54,750 --> 00:03:56,750 In the nation's whole of government 86 00:03:56,750 --> 00:03:58,972 approach to the Corona virus pandemic , 87 00:03:58,972 --> 00:04:01,250 the support includes providing 60 88 00:04:01,340 --> 00:04:03,630 decontamination systems that can 89 00:04:03,630 --> 00:04:07,360 sterilize up to 80,000 and 95 mass per 90 00:04:07,360 --> 00:04:10,230 day . Each are on order . With several 91 00:04:10,240 --> 00:04:13,700 already in place . We continue to 92 00:04:13,700 --> 00:04:16,280 carefully and methodically track the 93 00:04:16,280 --> 00:04:18,440 state of the defense industrial base 94 00:04:18,750 --> 00:04:20,528 through D . C M . A . For prime 95 00:04:20,528 --> 00:04:23,000 company's top 10 defense contractors 96 00:04:23,010 --> 00:04:26,810 and D L . A . For vendors out of 97 00:04:26,820 --> 00:04:30,190 10,509 Major Prime Cos . 98 00:04:30,200 --> 00:04:33,720 106 are closed , with 68 companies 99 00:04:33,730 --> 00:04:36,550 having closed and reopened out of 100 00:04:36,550 --> 00:04:39,930 11,413 vendor based 101 00:04:39,930 --> 00:04:43,200 company's 427 or close with 102 00:04:43,200 --> 00:04:46,450 147 having closed and reopened 103 00:04:47,340 --> 00:04:49,118 domestically . We're seeing the 104 00:04:49,118 --> 00:04:51,560 greatest impacts in the aviation supply 105 00:04:51,560 --> 00:04:54,670 chain , shipbuilding and small space 106 00:04:54,670 --> 00:04:57,210 launch . We're seeing impact on the 107 00:04:57,210 --> 00:04:59,350 industrial base by several pockets of 108 00:04:59,350 --> 00:05:01,880 closure internationally . Particularly 109 00:05:01,890 --> 00:05:04,220 of note is Mexico , where we have a 110 00:05:04,220 --> 00:05:06,510 group of companies that are impacting 111 00:05:06,520 --> 00:05:09,240 many of our major primes regarding 112 00:05:09,240 --> 00:05:10,930 Mexico . I spoke with our U S 113 00:05:10,930 --> 00:05:13,650 ambassador to Mexico on Friday and 114 00:05:13,650 --> 00:05:15,817 today I am writing the Mexican foreign 115 00:05:15,817 --> 00:05:18,740 minister toe ask for help to reopen 116 00:05:18,750 --> 00:05:21,310 international suppliers there . These 117 00:05:21,310 --> 00:05:23,750 companies are especially important for 118 00:05:23,750 --> 00:05:25,650 US airframe production . 119 00:05:27,840 --> 00:05:30,560 I'm very thankful to Jen Santos and our 120 00:05:30,560 --> 00:05:33,100 industrial policy team who continue to 121 00:05:33,100 --> 00:05:36,070 lead 3 to 4 industry calls per week 122 00:05:36,110 --> 00:05:40,060 with 18 associations representing over 123 00:05:40,060 --> 00:05:43,250 three million cos I remain proud of the 124 00:05:43,250 --> 00:05:45,194 department's response of this . In 125 00:05:45,194 --> 00:05:47,250 addressing defense industry concerns 126 00:05:47,250 --> 00:05:49,980 outline drawing these calls . Mr . Kim 127 00:05:49,980 --> 00:05:51,813 Harrington , director of defense 128 00:05:51,813 --> 00:05:54,710 pricing and contracting , has issued 20 129 00:05:54,720 --> 00:05:58,290 defense pricing and cost memos 130 00:05:58,350 --> 00:06:00,650 aggressively responding to industry 131 00:06:00,650 --> 00:06:03,650 needs and impacts . Those memos include 132 00:06:03,650 --> 00:06:05,817 guidance for increased telecommuting , 133 00:06:06,340 --> 00:06:08,660 increased progress payment rates , 134 00:06:09,090 --> 00:06:12,020 acquisition timeline impacts , relief 135 00:06:12,030 --> 00:06:14,250 for those who cannot work . And Maur , 136 00:06:15,000 --> 00:06:16,944 Vice Admiral David Lewis , Defense 137 00:06:16,944 --> 00:06:19,111 Contracting Management Agency , or D C 138 00:06:19,111 --> 00:06:22,730 M . A director modified 1500 contracts 139 00:06:22,730 --> 00:06:25,450 to help companies file invoices at the 140 00:06:25,450 --> 00:06:27,970 higher progress payment rate . And he 141 00:06:27,970 --> 00:06:30,060 also worked with the Defense Finance 142 00:06:30,060 --> 00:06:32,171 and Accounting Service for a seamless 143 00:06:32,171 --> 00:06:35,720 transition for invite invoices based on 144 00:06:35,720 --> 00:06:38,470 submitted invoices . We expect payments 145 00:06:38,480 --> 00:06:40,800 at the higher Progress prepayment rate 146 00:06:40,960 --> 00:06:44,470 to start this week , helping provide $3 147 00:06:44,470 --> 00:06:46,690 billion in increased cash flow to 148 00:06:46,700 --> 00:06:49,380 industry . I commend Lockheed Martin 149 00:06:49,380 --> 00:06:51,990 and Boeing for both publicly committing 150 00:06:51,990 --> 00:06:54,770 to ensure this cash flow goes quickly 151 00:06:54,770 --> 00:06:56,770 down the supply chain to small 152 00:06:56,770 --> 00:06:59,030 businesses who need it . Most were 153 00:06:59,030 --> 00:07:01,420 hoping for similar public announcements 154 00:07:01,540 --> 00:07:04,640 from other major primes . The Office of 155 00:07:04,640 --> 00:07:07,140 Small Business Programs continues to 156 00:07:07,140 --> 00:07:09,390 work closely with the service's and 157 00:07:09,390 --> 00:07:11,870 small business administration . We 158 00:07:11,870 --> 00:07:14,120 hosted a small business webinar with 159 00:07:14,120 --> 00:07:16,910 over 1000 Cos . This month , and both 160 00:07:16,910 --> 00:07:18,966 the Army and Navy have increased the 161 00:07:18,966 --> 00:07:21,220 rate of obligations to small business 162 00:07:21,220 --> 00:07:23,740 concerns , obligating an additional 163 00:07:23,750 --> 00:07:27,110 $180 million per week above their 164 00:07:27,110 --> 00:07:29,650 normal spending since mid February , 165 00:07:29,740 --> 00:07:32,990 which equates to a 26% increase from 166 00:07:32,990 --> 00:07:36,260 the previous year . I remain very proud 167 00:07:36,260 --> 00:07:39,180 of D . L . A D C M A Detroit , the 168 00:07:39,180 --> 00:07:41,470 Joint Acquisition Task Force and the 169 00:07:41,470 --> 00:07:43,870 entire department's efforts to support 170 00:07:43,880 --> 00:07:45,491 the whole of government . An 171 00:07:45,491 --> 00:07:48,410 interagency battle against Cove . In 19 172 00:07:49,670 --> 00:07:52,000 The department has leveraged 5500 173 00:07:52,000 --> 00:07:55,750 contracting actions totaling over $1.5 174 00:07:55,750 --> 00:07:59,100 billion in response to Cove in 19 . The 175 00:07:59,100 --> 00:08:02,150 largest amount is almost $700 million 176 00:08:02,190 --> 00:08:04,690 in medical construction for the mobile 177 00:08:04,700 --> 00:08:07,320 military medical hospitals , medical 178 00:08:07,320 --> 00:08:10,040 equipment , lab equipment and testing 179 00:08:10,050 --> 00:08:13,840 are all high priorities . The $1.5 180 00:08:13,840 --> 00:08:16,980 billion number includes the 415 million 181 00:08:16,980 --> 00:08:19,590 d o . D . Contract in support of Health 182 00:08:19,600 --> 00:08:22,500 and Human Service is for 60 Patel 183 00:08:22,500 --> 00:08:25,040 Memorial Institute Critical Care 184 00:08:25,100 --> 00:08:27,620 Decontamination Systems , which will 185 00:08:27,620 --> 00:08:30,190 allow medical professionals to reuse 186 00:08:30,190 --> 00:08:33,000 masks up to 20 times , reducing the 187 00:08:33,000 --> 00:08:36,220 nation's need for new inventory . Six 188 00:08:36,220 --> 00:08:38,053 units were delivered last week , 189 00:08:38,100 --> 00:08:40,770 including two to New York and one each 190 00:08:40,770 --> 00:08:43,090 to Columbus , Ohio . Bust in 191 00:08:43,090 --> 00:08:45,510 Massachusetts , Chicago , Illinois . 192 00:08:45,630 --> 00:08:47,852 And Tacoma , Washington . Providing the 193 00:08:47,852 --> 00:08:51,130 ability to sterilize 3.4 million masks 194 00:08:51,130 --> 00:08:53,370 a week , reducing the need for new 195 00:08:53,370 --> 00:08:56,780 masks by the same number . All 60 196 00:08:56,780 --> 00:08:59,550 systems will be available by early May 197 00:08:59,560 --> 00:09:02,370 for prioritization and distribution by 198 00:09:02,370 --> 00:09:04,370 Health and Human Service Is and the 199 00:09:04,370 --> 00:09:06,510 Federal Emergency Management Agency . 200 00:09:06,690 --> 00:09:09,560 Once all are delivered , these 60 units 201 00:09:09,560 --> 00:09:13,250 will allow 4.8 million mast to be 202 00:09:13,250 --> 00:09:16,550 sterilised per day , almost 34 million 203 00:09:16,610 --> 00:09:19,620 per week . We have delivered 10 million 204 00:09:19,630 --> 00:09:23,130 and 95 masks to HHS and FEMA and our 205 00:09:23,130 --> 00:09:26,080 provide and are prepared to provide 10 206 00:09:26,080 --> 00:09:29,720 million Maur from D o D stocks . Last 207 00:09:29,720 --> 00:09:31,910 week , we announced our first Defense 208 00:09:31,910 --> 00:09:34,420 Production Act DP , a Title three 209 00:09:34,420 --> 00:09:37,700 project , which will invest $133 210 00:09:37,700 --> 00:09:40,580 million to increase domestic production 211 00:09:40,640 --> 00:09:44,450 of N 95 masks toe over 39 million 212 00:09:45,270 --> 00:09:48,340 in the next 90 days or 13 million per 213 00:09:48,340 --> 00:09:50,530 month . This will help ensure our 214 00:09:50,530 --> 00:09:52,840 government has the industrial capacity 215 00:09:53,010 --> 00:09:55,780 to meet the nation's needs . While we 216 00:09:55,780 --> 00:09:58,002 had signed letters of intent early last 217 00:09:58,002 --> 00:09:59,891 week , we only just finalized the 218 00:09:59,891 --> 00:10:02,110 contracts late last week . Mike will 219 00:10:02,110 --> 00:10:04,560 send out the details today , but the 220 00:10:04,560 --> 00:10:06,830 three companies awarded contracts are 221 00:10:06,940 --> 00:10:10,410 three M for 76 million , all in M 222 00:10:10,410 --> 00:10:13,550 halyard for 29 million and Honeywell 223 00:10:13,590 --> 00:10:16,730 for 27.4 million . The increased 224 00:10:16,730 --> 00:10:18,563 production will ensure the U . S 225 00:10:18,563 --> 00:10:21,110 government gets dedicated long term 226 00:10:21,120 --> 00:10:23,560 industrial capacity to meet the needs 227 00:10:23,560 --> 00:10:26,750 of the nation . DeLay has delivered 228 00:10:26,750 --> 00:10:29,640 5000 face shields to the Javits Center . 229 00:10:30,070 --> 00:10:32,720 6000 Maur have gone to FEMA to be 230 00:10:32,720 --> 00:10:34,990 distributed to New York City first 231 00:10:34,990 --> 00:10:38,550 responders This week , I want to talk 232 00:10:38,550 --> 00:10:40,900 briefly about the scope of our DP A 233 00:10:40,900 --> 00:10:43,600 Title three efforts . The department's 234 00:10:43,610 --> 00:10:46,570 DP A Title three Investment in response 235 00:10:46,570 --> 00:10:49,160 to Cove in 19 is increasing 236 00:10:49,160 --> 00:10:51,990 manufacturing capacity and throughput 237 00:10:52,070 --> 00:10:54,100 for critical materials through a 238 00:10:54,100 --> 00:10:56,670 variety of means oneness facility 239 00:10:56,670 --> 00:10:58,730 conversion . Another is equipment 240 00:10:58,730 --> 00:11:02,400 person purchase , also enabling sub 241 00:11:02,400 --> 00:11:05,100 tier suppliers and helping with long 242 00:11:05,100 --> 00:11:08,050 lead material purchases . The objective 243 00:11:08,140 --> 00:11:10,800 is to eliminate reliance on the foreign 244 00:11:10,800 --> 00:11:14,590 supply chain . D o D . Uses Title three 245 00:11:14,600 --> 00:11:16,378 traditionally for the defense , 246 00:11:16,378 --> 00:11:18,270 industrial base , resiliency and 247 00:11:18,310 --> 00:11:21,020 Security . And now we're helping with 248 00:11:21,020 --> 00:11:23,131 medical and health care . Resource is 249 00:11:23,131 --> 00:11:25,650 with HHS and FEMA coordination , 250 00:11:26,760 --> 00:11:28,760 understanding that our efforts will 251 00:11:28,760 --> 00:11:31,550 continue to evolve . The current DP A 252 00:11:31,550 --> 00:11:33,640 title three . Medical and health 253 00:11:33,640 --> 00:11:35,520 resource is priorities can be 254 00:11:35,520 --> 00:11:37,720 categorized in the following areas , 255 00:11:37,850 --> 00:11:41,030 not in any particular order and 95 256 00:11:41,030 --> 00:11:43,990 masks , ventilators , active 257 00:11:43,990 --> 00:11:46,480 pharmaceutical ingredients . Testing 258 00:11:46,480 --> 00:11:48,840 kits , suppliers and re agents , 259 00:11:49,120 --> 00:11:52,110 vaccines and delivery systems and other 260 00:11:52,110 --> 00:11:54,420 emerging areas of personal protective 261 00:11:54,420 --> 00:11:57,500 equipment , or p p e . For the defense 262 00:11:57,500 --> 00:11:59,980 Industrial base . Critical DP a title . 263 00:11:59,980 --> 00:12:02,990 Three Defense sex Ter areas include 264 00:12:03,370 --> 00:12:06,000 machine tools and industrial controls , 265 00:12:06,440 --> 00:12:09,280 aircraft supply chain illumination , 266 00:12:09,520 --> 00:12:12,530 Kem bio directed energy radar , 267 00:12:12,580 --> 00:12:15,940 munitions and missiles , space ship 268 00:12:15,940 --> 00:12:18,260 building , soldier systems and ground 269 00:12:18,260 --> 00:12:21,390 systems from The Cares Act . We 270 00:12:21,390 --> 00:12:24,330 received $1 billion for DP a Title 271 00:12:24,330 --> 00:12:27,610 three . We anticipate receiving blanket 272 00:12:27,720 --> 00:12:30,960 title DP A title three . Approval for 273 00:12:30,960 --> 00:12:33,630 health care and medical resource is to 274 00:12:33,630 --> 00:12:36,230 shorten the interagency process , and 275 00:12:36,230 --> 00:12:38,230 we are working with our interagency 276 00:12:38,230 --> 00:12:41,340 partners to plan an obligate . We are 277 00:12:41,340 --> 00:12:45,160 prioritizing approximately $750 278 00:12:45,160 --> 00:12:47,390 million for medical resource is and 279 00:12:47,390 --> 00:12:50,490 $250 million for the defense industrial 280 00:12:50,490 --> 00:12:53,430 base . In closing , I want to thank 281 00:12:53,430 --> 00:12:56,180 Congress both the authorize er's end 282 00:12:56,180 --> 00:12:58,520 appropriators who have been responsive 283 00:12:58,530 --> 00:13:01,160 and supportive of our efforts . Last 284 00:13:01,160 --> 00:13:03,860 week I briefed both the SAS can ask and 285 00:13:03,860 --> 00:13:06,400 I'm speaking with Sakti and hacked E to 286 00:13:06,720 --> 00:13:09,590 ensure we stay updated , were working 287 00:13:09,590 --> 00:13:12,040 as smartly and quickly as we can in 288 00:13:12,040 --> 00:13:14,940 close coordination with the Hill State 289 00:13:14,940 --> 00:13:17,090 governors and the defense industrial 290 00:13:17,090 --> 00:13:20,130 base to do everything we can to support 291 00:13:20,140 --> 00:13:22,660 our military members , their families , 292 00:13:22,890 --> 00:13:25,240 defense contractors and our fellow 293 00:13:25,240 --> 00:13:27,740 citizens . Thank you with that . I'll 294 00:13:27,740 --> 00:13:30,860 take questions . Go ahead . Hi . Thanks . 295 00:13:30,870 --> 00:13:33,800 Um , Tara cop with McClatchy . Uh , you 296 00:13:33,800 --> 00:13:35,689 know , in the last couple weeks , 297 00:13:35,689 --> 00:13:37,744 hospitals have reported having their 298 00:13:37,744 --> 00:13:39,744 order seized or rerouted . And FEMA 299 00:13:39,744 --> 00:13:41,744 administrator put out a letter last 300 00:13:41,744 --> 00:13:44,160 week , Um , saying that maybe it put 301 00:13:44,170 --> 00:13:46,520 duties are under the defense production 302 00:13:46,520 --> 00:13:48,853 acted . Put those orders from D . O . D . 303 00:13:48,853 --> 00:13:50,964 Or other agencies at the front of the 304 00:13:50,964 --> 00:13:53,187 line . Can you speak to those hospitals 305 00:13:53,187 --> 00:13:55,187 and their concerns that maybe their 306 00:13:55,187 --> 00:13:57,464 orders were not filled ? And then , um , 307 00:13:57,464 --> 00:13:59,576 I'm to other questions , but maybe do 308 00:13:59,576 --> 00:14:01,520 this one first . Okay , So you are 309 00:14:01,520 --> 00:14:03,742 referring firstly to Defense Production 310 00:14:03,742 --> 00:14:06,330 Act Title one , which can put deal 311 00:14:06,330 --> 00:14:09,130 ratings or D X ratings on orders . He's 312 00:14:09,130 --> 00:14:11,360 air called deep ass ratings . D'oh . 313 00:14:11,370 --> 00:14:15,150 Ratings put a brings 314 00:14:15,210 --> 00:14:17,540 orders to the head of the line over all 315 00:14:17,550 --> 00:14:20,630 other commercial orders . DX ratings 316 00:14:21,010 --> 00:14:24,120 put orders above all other defense 317 00:14:24,130 --> 00:14:27,920 orders as well . Right now , in terms 318 00:14:27,930 --> 00:14:31,920 of using dio ratings , female HHS 319 00:14:31,930 --> 00:14:34,790 are prioritizing the supply chains in 320 00:14:34,790 --> 00:14:37,100 which they're ordering the way that 321 00:14:37,100 --> 00:14:39,850 those goods are being distributed is 322 00:14:39,850 --> 00:14:43,260 being determined at HHS and FEMA . So 323 00:14:43,260 --> 00:14:46,040 what they're doing is working with 324 00:14:46,040 --> 00:14:49,240 medical distributors to make sure all 325 00:14:49,240 --> 00:14:51,340 the P p e and medical equipment goes 326 00:14:51,340 --> 00:14:53,750 the right places . They , in turn , are 327 00:14:53,760 --> 00:14:56,750 asking hospitals and state governors 328 00:14:56,850 --> 00:14:58,572 toe work with their local FEMA 329 00:14:58,572 --> 00:15:01,170 distributors . So we are working on 330 00:15:01,170 --> 00:15:03,550 both the demand side as well as the 331 00:15:03,550 --> 00:15:05,920 supply side . And the way D . O D . 332 00:15:05,930 --> 00:15:08,540 Enters into that is through Admiral 333 00:15:08,540 --> 00:15:11,510 Plump Chuck , who is over spearheading 334 00:15:11,510 --> 00:15:14,000 the supply chain effort . So everything 335 00:15:14,000 --> 00:15:16,430 that we do at D . O . D . Is in 336 00:15:16,430 --> 00:15:19,070 coordination with FEMA and HHS 337 00:15:20,360 --> 00:15:22,527 had an order , and then all the sudden 338 00:15:22,527 --> 00:15:25,230 it's been moved or , uh , has a higher 339 00:15:25,230 --> 00:15:27,397 priority with some other agency . What 340 00:15:27,397 --> 00:15:30,150 do they dio ? What they do is they talk 341 00:15:30,160 --> 00:15:32,830 to their local FEMA administrator and 342 00:15:32,830 --> 00:15:35,430 work through that system that way . And 343 00:15:35,430 --> 00:15:37,830 then , secondly , a bit ago , you 344 00:15:37,830 --> 00:15:40,350 talked about the three major and 95 345 00:15:40,830 --> 00:15:43,090 contracts that are underway . Earlier 346 00:15:43,090 --> 00:15:45,980 this month , DeLay issued on $86 347 00:15:45,980 --> 00:15:47,924 million contracts to a Puerto Rico 348 00:15:47,924 --> 00:15:49,813 company for and 95 masks with the 349 00:15:49,813 --> 00:15:52,450 delivery of December . Um , just 350 00:15:52,450 --> 00:15:54,672 wondering about that . The size of that 351 00:15:54,672 --> 00:15:56,690 contract . How many mask can $86 352 00:15:57,000 --> 00:15:59,680 million actually produce ? And , you 353 00:15:59,680 --> 00:16:01,736 know , with a December delivery , Is 354 00:16:01,736 --> 00:16:04,030 this Mike in preparation for a future , 355 00:16:04,440 --> 00:16:07,560 you know , cycle of need . I will say 356 00:16:07,560 --> 00:16:10,790 that we continue to work with Mask and 357 00:16:10,790 --> 00:16:13,810 95 mask suppliers above and beyond the 358 00:16:13,810 --> 00:16:15,588 three that I mentioned . And we 359 00:16:15,588 --> 00:16:18,820 anticipate a phase two d p a title 360 00:16:18,820 --> 00:16:22,820 three award for and 95 masks . We are 361 00:16:22,820 --> 00:16:26,680 working very hard with FEMA and 362 00:16:26,690 --> 00:16:30,140 HHS to determine overall demand as well 363 00:16:30,140 --> 00:16:33,680 as demand within D o . D . So 364 00:16:33,690 --> 00:16:37,120 what I can do is look into how 365 00:16:37,120 --> 00:16:40,330 much the average cost of price is , and 366 00:16:40,330 --> 00:16:42,274 we can get back to you . But these 367 00:16:42,274 --> 00:16:44,386 things are moving around a bit , so I 368 00:16:44,386 --> 00:16:46,386 don't know , off the top of my head 369 00:16:46,386 --> 00:16:48,663 just clarified the top of your remarks . 370 00:16:48,663 --> 00:16:50,774 She said 1.8 million and 95 mask have 371 00:16:50,774 --> 00:16:52,997 been distributed . And then later on to 372 00:16:52,997 --> 00:16:55,219 HHS , you said 10 million . Okay , this 373 00:16:55,219 --> 00:16:57,219 is a difference . Initially , I was 374 00:16:57,219 --> 00:16:59,386 talking about d o D . And then later I 375 00:16:59,386 --> 00:17:01,552 was talking about the fact that out of 376 00:17:01,552 --> 00:17:04,250 d o d stocks , we have provided HHS and 377 00:17:04,250 --> 00:17:08,090 FEMA with 10 million in 95 Mass , 378 00:17:08,100 --> 00:17:11,430 and we are going to give another 10 379 00:17:11,430 --> 00:17:14,350 million out of our stocks . Okay ? 380 00:17:14,350 --> 00:17:16,390 We're gonna go to the phones . Um , 381 00:17:16,650 --> 00:17:19,960 Mike Stone , are you there ? Yes , sir . 382 00:17:19,970 --> 00:17:22,026 Right here . Thank you very much for 383 00:17:22,026 --> 00:17:25,010 doing this . I asked specifically . 384 00:17:25,020 --> 00:17:27,131 What has the White House directed the 385 00:17:27,131 --> 00:17:30,360 Pentagon to do in terms of , uh , 386 00:17:31,000 --> 00:17:34,250 ante Covic measures has been 387 00:17:34,730 --> 00:17:37,020 mass ventilators . What's the line ? A 388 00:17:37,020 --> 00:17:39,187 member of the White House is requested 389 00:17:39,187 --> 00:17:41,730 to get the system . I'm not clear on 390 00:17:41,730 --> 00:17:44,010 your question . You're asking what has 391 00:17:44,010 --> 00:17:47,260 the White House requested d o d to do 392 00:17:47,440 --> 00:17:50,170 in terms of supplying equipment to the 393 00:17:50,170 --> 00:17:53,890 nation ? Uh , both supplying , but 394 00:17:53,890 --> 00:17:56,440 also ordering . You bring a huge amount 395 00:17:56,440 --> 00:17:58,290 of power in terms of how you can 396 00:17:59,030 --> 00:18:01,500 maneuver the great ship of the Pentagon 397 00:18:01,500 --> 00:18:03,611 around . And so I'm asking where they 398 00:18:03,611 --> 00:18:06,160 ask you that . Lend your effort ? Well , 399 00:18:06,500 --> 00:18:10,100 we work through the vice president's 400 00:18:10,100 --> 00:18:13,150 task force . Initially , we stood up 401 00:18:13,150 --> 00:18:15,730 our joint acquisition task force that 402 00:18:15,730 --> 00:18:18,910 Stacy Cummings leads out of a N s . And 403 00:18:18,910 --> 00:18:21,470 we have individuals from all the 404 00:18:21,470 --> 00:18:23,590 different service's and agencies 405 00:18:23,590 --> 00:18:26,540 involved . And what we have been doing 406 00:18:26,550 --> 00:18:30,530 is to work along with HHS and 407 00:18:30,530 --> 00:18:33,700 FEMA contracting individuals to help 408 00:18:33,710 --> 00:18:37,330 program manage , if you will , many of 409 00:18:37,330 --> 00:18:39,730 the areas that they are buying . So , 410 00:18:39,730 --> 00:18:41,730 for instance , we have a ventilator 411 00:18:41,730 --> 00:18:44,360 Later team . We have a P . P e team . 412 00:18:44,370 --> 00:18:46,780 We have a pharmaceutical team and so 413 00:18:46,780 --> 00:18:49,980 forth that work with those . We also 414 00:18:49,990 --> 00:18:52,570 are beginning to take on more 415 00:18:52,570 --> 00:18:55,090 contracting ourselves , particularly 416 00:18:55,140 --> 00:18:58,720 for the Mork complex and large orders . 417 00:18:58,830 --> 00:19:01,390 And then , if you were call . We have 418 00:19:01,390 --> 00:19:03,680 had a long standing agreement between 419 00:19:03,680 --> 00:19:06,440 FEMA and the Defense Logistics Agency , 420 00:19:06,450 --> 00:19:08,950 which was typically utilized , drawing 421 00:19:08,950 --> 00:19:12,090 national emergencies such as tornadoes , 422 00:19:12,090 --> 00:19:14,940 hurricanes and so forth . Where there's 423 00:19:14,940 --> 00:19:17,630 an memorandum of agreement where FEMA 424 00:19:17,640 --> 00:19:20,750 can very quickly order supplies through 425 00:19:20,750 --> 00:19:23,270 d l . A . So we have continued to do 426 00:19:23,270 --> 00:19:26,170 that . So we are embedded at the 427 00:19:26,180 --> 00:19:29,980 NRCC with HHS and FEMA . We 428 00:19:29,980 --> 00:19:33,130 take part in the daily VP task force 429 00:19:33,130 --> 00:19:35,740 meetings , and we're there to support 430 00:19:36,040 --> 00:19:38,750 the entire inter agency with any 431 00:19:38,750 --> 00:19:41,770 contracting that they need done as well 432 00:19:41,770 --> 00:19:44,260 as carrying out the DP A Title three 433 00:19:44,270 --> 00:19:45,050 contracting 434 00:19:49,200 --> 00:19:52,900 to get that Mike . Yeah , Thank you . 435 00:19:55,680 --> 00:19:58,013 Okay . All right . We're gonna go to Ah , 436 00:19:58,013 --> 00:20:00,530 Tony Capacity . Oh , I am Lord . Hi . 437 00:20:00,530 --> 00:20:02,586 Can you hear me ? Yes , I can Tony . 438 00:20:02,840 --> 00:20:04,896 Hey , Good . Hope your hope . You're 439 00:20:04,896 --> 00:20:07,173 doing well . Uh , get couple questions . 440 00:20:07,173 --> 00:20:09,173 One , When Kim Harrington announced 441 00:20:09,173 --> 00:20:11,007 $3.3 billion in progress payment 442 00:20:11,007 --> 00:20:13,173 increases a couple weeks ago , he said 443 00:20:13,173 --> 00:20:14,729 that the department is high 444 00:20:14,729 --> 00:20:16,840 expectations that primes are ensuring 445 00:20:16,840 --> 00:20:19,007 cash flow is moving to small companies 446 00:20:19,007 --> 00:20:20,951 in the respective supply chains as 447 00:20:20,951 --> 00:20:24,120 needed . His A . M s set up any system 448 00:20:24,120 --> 00:20:26,064 to actually track how the money is 449 00:20:26,064 --> 00:20:28,231 spent . So you're not just taking this 450 00:20:28,231 --> 00:20:30,398 on faith that the companies were doing 451 00:20:30,398 --> 00:20:32,630 that , You know , I'm using for share 452 00:20:32,630 --> 00:20:34,519 buybacks in the next few months . 453 00:20:34,570 --> 00:20:36,792 You've heard that complaint . Okay , so 454 00:20:36,792 --> 00:20:39,020 let's stop right there . What we have 455 00:20:39,020 --> 00:20:41,880 done is we have asked each of the 456 00:20:41,880 --> 00:20:44,760 companies to ensure that they are 457 00:20:44,760 --> 00:20:47,940 flowing down funds . Lockheed , I think , 458 00:20:47,940 --> 00:20:50,060 has been the most forthcoming about 459 00:20:50,060 --> 00:20:52,420 that . Publishing some of it . Boeing 460 00:20:52,420 --> 00:20:54,500 has said they will a swell . We have 461 00:20:54,510 --> 00:20:57,170 asked the industry associations to 462 00:20:57,170 --> 00:21:00,240 track that for us , but we did not , as 463 00:21:00,240 --> 00:21:03,800 we don't typically do . Put a specific 464 00:21:03,810 --> 00:21:07,110 auditing function in review . However , 465 00:21:07,110 --> 00:21:09,221 as you well know , there are multiple 466 00:21:09,221 --> 00:21:11,950 levels of audits that go on on all of 467 00:21:11,960 --> 00:21:14,900 our major contracts , so that will be 468 00:21:14,900 --> 00:21:18,660 traced as we move forward . Connect D c . 469 00:21:18,660 --> 00:21:20,870 A going to be used to trace that going 470 00:21:20,870 --> 00:21:22,926 forward when they when the companies 471 00:21:22,926 --> 00:21:25,550 come in with their cost reports . D . C . 472 00:21:25,550 --> 00:21:28,690 A is always auditing , and we have not 473 00:21:28,690 --> 00:21:31,570 had specific conversations with them 474 00:21:31,580 --> 00:21:33,524 relative to that , as we're moving 475 00:21:33,524 --> 00:21:35,636 fairly quickly . But I think is , you 476 00:21:35,636 --> 00:21:37,802 know , there's an incredible amount of 477 00:21:37,802 --> 00:21:40,120 oversight that goes into the defense 478 00:21:40,120 --> 00:21:42,610 contracting arena , that's for sure . 479 00:21:42,610 --> 00:21:44,777 Okay . Thank you , ma'am . Thank you . 480 00:21:44,790 --> 00:21:47,940 Tom Bowman . Hey , thanks for doing 481 00:21:47,940 --> 00:21:49,884 this . A CZ . You know , President 482 00:21:49,884 --> 00:21:51,940 Trump said that BP would be used for 483 00:21:51,940 --> 00:21:53,662 testing swabs . They give us a 484 00:21:53,662 --> 00:21:56,520 timetable on number . Uh , they're 485 00:21:56,520 --> 00:21:58,687 needed . And when will be delivered in 486 00:21:58,687 --> 00:22:00,409 the same with testing kits you 487 00:22:00,409 --> 00:22:02,576 mentioned . Both civilian and military 488 00:22:02,576 --> 00:22:04,742 officials say there's a great need for 489 00:22:04,742 --> 00:22:06,687 testing kits as well as machines , 490 00:22:06,910 --> 00:22:09,300 numbers , timetable . And then , 491 00:22:09,300 --> 00:22:11,467 finally , General Milley said his goal 492 00:22:11,467 --> 00:22:14,440 is to do 60,000 tests by the end of May , 493 00:22:14,450 --> 00:22:17,290 early June . What does he need to make 494 00:22:17,290 --> 00:22:20,620 that happen ? So I think is you know , 495 00:22:20,630 --> 00:22:24,620 for most of the systems there is a swab , 496 00:22:24,630 --> 00:22:26,940 and then they're a set of re agents to 497 00:22:26,940 --> 00:22:29,240 prepare the cassette , if you will , to 498 00:22:29,240 --> 00:22:31,351 go into the analyzer And then there's 499 00:22:31,351 --> 00:22:34,850 an analyzer . Eso what we're doing . We 500 00:22:34,850 --> 00:22:36,961 actually worked over the weekend with 501 00:22:36,961 --> 00:22:39,450 one key company on a specific type of 502 00:22:39,450 --> 00:22:42,030 swab . Where were we are working on a 503 00:22:42,030 --> 00:22:45,660 DP ? A Title three project right now 504 00:22:45,670 --> 00:22:48,200 that I anticipate being out in the next 505 00:22:48,200 --> 00:22:52,160 few days , we have a demand signal from 506 00:22:52,160 --> 00:22:54,910 D o D . That the joint staff continues 507 00:22:54,910 --> 00:22:58,030 toe work . And then HHS and FEMA 508 00:22:58,030 --> 00:23:00,240 continued to look at the demand signal 509 00:23:00,250 --> 00:23:02,680 for the rest of the nation because 510 00:23:02,680 --> 00:23:05,070 there are a variety of different test 511 00:23:05,070 --> 00:23:08,230 systems with different throughput and 512 00:23:08,230 --> 00:23:11,590 different levels of accuracy . The 513 00:23:11,600 --> 00:23:13,820 protocol , if you will for testing 514 00:23:13,820 --> 00:23:16,190 continues to evolve . So I'm not gonna 515 00:23:16,190 --> 00:23:19,390 talk about actual numbers right now . 516 00:23:19,400 --> 00:23:23,140 We here in the Pentagon have put 517 00:23:23,140 --> 00:23:25,880 major general pain in charge off all 518 00:23:25,880 --> 00:23:28,890 test kits . So we have one individual 519 00:23:28,890 --> 00:23:31,120 within D . A . J . Who is pulling all 520 00:23:31,120 --> 00:23:33,342 of that together . He is working very , 521 00:23:33,342 --> 00:23:36,110 very carefully with the Joint staff as 522 00:23:36,110 --> 00:23:38,320 well as the service is who continue to 523 00:23:38,320 --> 00:23:41,970 evolve their testing methodology in 524 00:23:41,970 --> 00:23:44,137 terms of what is the demand signal for 525 00:23:44,137 --> 00:23:46,192 the rest of the nation . I would ask 526 00:23:46,192 --> 00:23:48,690 that you talked to HHS and FEMA about 527 00:23:48,690 --> 00:23:51,030 that . Thank you . And again , what is 528 00:23:51,040 --> 00:23:53,980 the General Milley need to make sure he 529 00:23:53,980 --> 00:23:57,110 can do 60,000 tests by the end of May 530 00:23:57,110 --> 00:24:00,190 early June . He needs the entire 531 00:24:00,190 --> 00:24:02,700 testing chain in the right place at the 532 00:24:02,700 --> 00:24:04,790 right time . And that's what General 533 00:24:04,790 --> 00:24:06,734 Pain is working with . Each of the 534 00:24:06,734 --> 00:24:09,190 service is on , so it'll focus of our 535 00:24:09,200 --> 00:24:13,140 daily task force meetings here in the 536 00:24:13,140 --> 00:24:15,307 Pentagon . A lot of people are working 537 00:24:15,307 --> 00:24:17,720 on that . So exactly what the Delta is 538 00:24:17,720 --> 00:24:20,660 between what we have on hand right now 539 00:24:20,660 --> 00:24:23,480 and what is needed to complete those . 540 00:24:23,490 --> 00:24:25,546 I do not have that data right here , 541 00:24:25,546 --> 00:24:27,601 but that is being worked on , and we 542 00:24:27,601 --> 00:24:29,712 are aggressively following up . We're 543 00:24:29,712 --> 00:24:31,768 gonna go back in the room to Lucas . 544 00:24:34,280 --> 00:24:36,280 I'll let uh , Tom Bo , there's that 545 00:24:36,280 --> 00:24:39,180 question . Imagine that key company for 546 00:24:39,180 --> 00:24:42,390 the swabs . I'm not going to release 547 00:24:42,400 --> 00:24:45,690 any names until we have the contract in 548 00:24:45,760 --> 00:24:48,070 places that to pre decisional . So , 549 00:24:48,070 --> 00:24:50,237 guys , I've got 15 reporters here . We 550 00:24:50,237 --> 00:24:52,403 can each ask three questions . Lucas , 551 00:24:52,403 --> 00:24:54,459 do you have a question you'd like to 552 00:24:54,459 --> 00:24:56,459 ask , Secretary Lord , Are you seen 553 00:24:56,459 --> 00:24:58,570 price gouging when it comes to buying 554 00:24:58,570 --> 00:25:00,737 these and 95 masks . I particularly am 555 00:25:00,737 --> 00:25:02,959 not following that . So I have not seen 556 00:25:02,959 --> 00:25:04,959 that . And I have not heard reports 557 00:25:04,959 --> 00:25:07,126 from D L . A . On that . There's a lot 558 00:25:07,126 --> 00:25:09,292 of reports that these mass this prices 559 00:25:09,292 --> 00:25:09,090 spike tremendously . You're saying 560 00:25:09,090 --> 00:25:11,257 you're not seeing any of that ? You're 561 00:25:11,257 --> 00:25:13,312 getting a good price for this . I do 562 00:25:13,312 --> 00:25:15,534 not follow . The actual price is what I 563 00:25:15,534 --> 00:25:17,646 will say is I am particularly focused 564 00:25:17,646 --> 00:25:19,812 on creating capacity and throughput so 565 00:25:19,812 --> 00:25:21,868 that we do not have that situation . 566 00:25:21,868 --> 00:25:24,090 And that's what we've been aggressively 567 00:25:24,090 --> 00:25:26,201 doing the last week and will continue 568 00:25:26,201 --> 00:25:28,160 to do this week . Aaron Meta 569 00:25:31,590 --> 00:25:33,757 Aaron . Yeah . Thanks for doing this , 570 00:25:33,757 --> 00:25:37,150 man . Um , one just kind of be specific 571 00:25:37,150 --> 00:25:39,150 here . So you mentioned there are a 572 00:25:39,150 --> 00:25:41,372 couple of issues you're tracking to rob 573 00:25:41,372 --> 00:25:43,317 a supply chain , but are there any 574 00:25:43,317 --> 00:25:45,317 programs that you are now seeing or 575 00:25:45,317 --> 00:25:47,720 predicting delays or delivery , or for 576 00:25:47,720 --> 00:25:50,350 specific milestones that you're 577 00:25:50,350 --> 00:25:52,350 concerned about ? And if so , which 578 00:25:52,350 --> 00:25:54,461 ones ? All right , so we're following 579 00:25:54,461 --> 00:25:58,010 all the m gaps , particularly we see a 580 00:25:58,010 --> 00:26:00,730 slowdown in the shipyards . To an 581 00:26:00,730 --> 00:26:04,710 extent , aviation is actually the most 582 00:26:04,710 --> 00:26:07,860 highly impacted sector we have right 583 00:26:07,860 --> 00:26:11,380 now , so the 20 different 584 00:26:11,480 --> 00:26:13,850 memos that Kim Harrington put out our 585 00:26:13,850 --> 00:26:17,230 really to make sure cash flows and we 586 00:26:17,230 --> 00:26:20,310 quickly get on contract so we can keep 587 00:26:20,310 --> 00:26:23,080 going . So right now , there isn't any 588 00:26:23,310 --> 00:26:26,820 specific cove in penalty that we see 589 00:26:26,820 --> 00:26:29,660 for a specific program . However , we 590 00:26:29,660 --> 00:26:32,590 do anticipate about , ah , three month , 591 00:26:32,600 --> 00:26:36,560 um , slow down at slower rate in terms 592 00:26:36,560 --> 00:26:39,480 of execution than we saw before . And 593 00:26:39,480 --> 00:26:42,280 we're just now looking at key 594 00:26:42,280 --> 00:26:44,750 milestones that might be impacted . So 595 00:26:44,750 --> 00:26:46,917 in short , I don't have anything right 596 00:26:46,917 --> 00:26:48,861 now , but we're watching closely . 597 00:26:48,861 --> 00:26:52,230 Thank you . Thanks . When you say three 598 00:26:52,230 --> 00:26:54,720 months slow down is that kind of rule 599 00:26:54,720 --> 00:26:57,970 across all the m baps or is it over 600 00:26:57,970 --> 00:27:00,000 talking specific programs and other 601 00:27:00,000 --> 00:27:02,470 programs ? We're gonna be okay . We 602 00:27:02,470 --> 00:27:05,020 believe there will be a three month 603 00:27:05,030 --> 00:27:07,400 impact that we can see right now . So 604 00:27:07,400 --> 00:27:09,456 we're looking at schedule delays and 605 00:27:09,456 --> 00:27:11,400 inefficiencies and so forth . That 606 00:27:11,400 --> 00:27:13,511 isn't a particular program . That's m 607 00:27:13,511 --> 00:27:14,511 gaps in general . 608 00:27:17,240 --> 00:27:17,850 Marcus . 609 00:27:23,220 --> 00:27:26,030 Sorry , uh , fumbled on the mute button 610 00:27:26,610 --> 00:27:29,170 Lord last week . Ah , Honda Gertz and I 611 00:27:29,170 --> 00:27:31,392 believe I will Roper . They both talked 612 00:27:31,392 --> 00:27:33,170 about the deed for the upcoming 613 00:27:33,170 --> 00:27:34,948 stimulus packages to help three 614 00:27:34,948 --> 00:27:37,950 industrial base in specific sectors . 615 00:27:38,370 --> 00:27:40,710 where , I guess Are you looking for 616 00:27:41,080 --> 00:27:43,160 stimulus money across industrial 617 00:27:43,160 --> 00:27:45,271 Bennett as a quick follow . What have 618 00:27:45,271 --> 00:27:47,327 you learned about your visibility in 619 00:27:47,327 --> 00:27:49,438 the Pentagon ? Visibility . Hold on . 620 00:27:49,438 --> 00:27:52,410 So for the first question , yes , we 621 00:27:52,410 --> 00:27:54,840 are . We're talking about 622 00:27:54,850 --> 00:27:58,490 inefficiencies relative to contracting 623 00:27:58,870 --> 00:28:01,610 because of Cove it . So we are looking 624 00:28:01,860 --> 00:28:04,830 for something in the next Cares Act 625 00:28:04,870 --> 00:28:08,600 package which is headed towards om be 626 00:28:08,600 --> 00:28:11,960 shortly from the Pentagon here , and we 627 00:28:11,960 --> 00:28:14,520 are in active conversations with 628 00:28:14,520 --> 00:28:16,380 members and staffers . 629 00:28:19,100 --> 00:28:21,211 Engine has a quick follow . Where are 630 00:28:21,211 --> 00:28:23,378 you ? What have you learned about your 631 00:28:23,378 --> 00:28:25,720 visibility or lack thereof into the 632 00:28:25,730 --> 00:28:27,990 supply chain ? And what ? How would you 633 00:28:27,990 --> 00:28:30,980 like to change that at all ? Well , 634 00:28:30,980 --> 00:28:33,091 what we are always concerned about is 635 00:28:33,091 --> 00:28:35,202 seeing down through all the different 636 00:28:35,202 --> 00:28:38,110 levels . So our team is focusing on 637 00:28:38,110 --> 00:28:40,950 supply chain illumination tools in the 638 00:28:40,950 --> 00:28:44,580 last couple of weeks . I think one of 639 00:28:44,590 --> 00:28:46,860 the key things we have found out are 640 00:28:46,860 --> 00:28:48,910 some international dependencies . 641 00:28:49,500 --> 00:28:51,230 Mexico right now is somewhat 642 00:28:51,230 --> 00:28:53,063 problematical for us , but we're 643 00:28:53,063 --> 00:28:55,119 working through our embassy and then 644 00:28:55,119 --> 00:28:56,952 their pockets in India as well . 645 00:28:59,790 --> 00:29:00,790 Tony Blair Tuka 646 00:29:04,540 --> 00:29:07,710 Hi , ma'am . Thank you . Um , in terms 647 00:29:07,710 --> 00:29:11,050 of the section 36 10 authorities that 648 00:29:11,050 --> 00:29:12,939 were put out that would reimburse 649 00:29:12,939 --> 00:29:16,510 contractors for Covic related delays or 650 00:29:16,520 --> 00:29:19,390 facility closures . Do you need new 651 00:29:19,390 --> 00:29:22,220 money from Congress to pay for that ? 652 00:29:22,230 --> 00:29:24,230 And how much do you think something 653 00:29:24,230 --> 00:29:26,280 like that's going to cost the 654 00:29:26,280 --> 00:29:28,280 department ? Ultimately , if you're 655 00:29:28,280 --> 00:29:30,169 looking at three months delays on 656 00:29:30,169 --> 00:29:33,110 things , um , we believe it will cost 657 00:29:33,110 --> 00:29:35,221 us something . And that's what's part 658 00:29:35,240 --> 00:29:38,770 of our ask for this new package that 659 00:29:38,770 --> 00:29:40,881 we're talking about . The cares . Act 660 00:29:40,881 --> 00:29:43,040 two . So we're talking billions and 661 00:29:43,040 --> 00:29:46,140 billions on that one . Yeah . How many 662 00:29:46,140 --> 00:29:48,840 1,000,000,000 would you say ? I guess I 663 00:29:48,840 --> 00:29:51,760 can't say we're not through on be yet . 664 00:29:53,050 --> 00:29:54,939 All right . Thanks . Billions and 665 00:29:54,939 --> 00:29:57,610 billions . Okay , We're gonna go to Ah , 666 00:29:57,620 --> 00:29:58,620 Jeff , Showgirl . 667 00:30:02,140 --> 00:30:05,560 Thank you . Um , um , Ms . Lord , you 668 00:30:05,560 --> 00:30:07,671 had mentioned you expect to slow down 669 00:30:07,671 --> 00:30:10,210 at shipyards . What about the , uh , m 670 00:30:10,210 --> 00:30:13,600 one Abrams tank factory at Lima , Ohio ? 671 00:30:13,920 --> 00:30:16,120 Do you expect Cove ? It will affect 672 00:30:16,130 --> 00:30:18,590 that will slow down production at that 673 00:30:18,600 --> 00:30:21,470 plant . I have not followed that 674 00:30:21,470 --> 00:30:23,526 specific plant , although I know the 675 00:30:23,526 --> 00:30:26,210 army is following it closely . What I 676 00:30:26,210 --> 00:30:28,410 will say is when we look at specific 677 00:30:28,410 --> 00:30:31,530 sectors , we see aviation . We see 678 00:30:31,530 --> 00:30:34,050 shipbuilding . And we saw that we see 679 00:30:34,050 --> 00:30:36,910 small space launch as the three areas 680 00:30:36,920 --> 00:30:40,010 of greatest concern . But again , we 681 00:30:40,020 --> 00:30:43,710 follow very carefully where the 682 00:30:43,710 --> 00:30:46,730 highest number of cases are throughout 683 00:30:46,730 --> 00:30:48,950 the country . And we look at the 684 00:30:49,800 --> 00:30:51,967 defense industrial base where they are 685 00:30:51,967 --> 00:30:54,220 located . So we try to anticipate the 686 00:30:54,220 --> 00:30:56,650 problems and work with the companies to 687 00:30:56,650 --> 00:30:58,539 keep going to the greatest degree 688 00:30:58,539 --> 00:31:02,490 possible . Well , thank you . 689 00:31:02,490 --> 00:31:04,379 In Congress allocated the Defense 690 00:31:04,379 --> 00:31:08,060 Department $1.45 billion for 691 00:31:08,060 --> 00:31:10,171 the supply chain . Can you talk ? How 692 00:31:10,171 --> 00:31:12,227 exactly is here ? You gonna allocate 693 00:31:12,227 --> 00:31:16,150 that money ? I'm not 694 00:31:16,150 --> 00:31:19,060 sure which particular amount you are 695 00:31:19,060 --> 00:31:21,310 referring to there . So let me look 696 00:31:21,310 --> 00:31:24,370 into a $1.5 billion that 697 00:31:24,800 --> 00:31:28,580 we've gotten 10.5 billion . But let me 698 00:31:28,580 --> 00:31:30,413 follow up on that . I'm not sure 699 00:31:30,413 --> 00:31:32,691 exactly what you're referring to there . 700 00:31:32,930 --> 00:31:34,986 Yeah , Jeff , shoot me a note on and 701 00:31:34,986 --> 00:31:37,097 we'll connect . Okay . We're gonna go 702 00:31:37,097 --> 00:31:38,097 to Lee Hudson . 703 00:31:41,530 --> 00:31:45,380 Great . Thank you . Um , did you break 704 00:31:45,420 --> 00:31:48,910 it on there ? Any fire 705 00:31:48,920 --> 00:31:51,370 release on Buster's coming in ? How ? 706 00:31:51,380 --> 00:31:53,950 You're working with Congress for your 707 00:31:54,530 --> 00:31:56,750 industry during the certain time . 708 00:31:56,940 --> 00:31:58,996 Thank you . OK , so , Lee , you were 709 00:31:58,996 --> 00:32:01,107 breaking up drawing the first part of 710 00:32:01,107 --> 00:32:03,780 that . The second part that I got Waas . 711 00:32:03,780 --> 00:32:06,050 How are we working with A I A I think . 712 00:32:06,140 --> 00:32:08,029 And before that , you were saying 713 00:32:08,029 --> 00:32:10,880 something about the supply chain . Can 714 00:32:10,880 --> 00:32:12,769 you hear me right now that that's 715 00:32:12,769 --> 00:32:16,690 better ? Yes , thank you . Okay . Could 716 00:32:16,690 --> 00:32:19,550 you talk about any additional supplier ? 717 00:32:19,550 --> 00:32:21,772 Really ? These measures that are coming 718 00:32:21,772 --> 00:32:24,150 and elaborate how you are working with 719 00:32:24,160 --> 00:32:26,480 to support the aerospace industry 720 00:32:26,490 --> 00:32:29,940 during this uncertain time ? Well , on 721 00:32:29,940 --> 00:32:32,162 the second part of the question , we're 722 00:32:32,162 --> 00:32:34,850 working with multiple industry 723 00:32:34,850 --> 00:32:38,010 associations , not just a , um , 724 00:32:38,370 --> 00:32:41,920 typically A and D I A PSC . We work 725 00:32:41,920 --> 00:32:44,500 very closely with , but drawing the 726 00:32:44,500 --> 00:32:46,830 last four weeks or so where we have 727 00:32:46,830 --> 00:32:49,440 held multiple telephone calls , 728 00:32:49,480 --> 00:32:51,360 webinars , different types of 729 00:32:51,360 --> 00:32:53,880 interactions . During the week we've 730 00:32:53,890 --> 00:32:55,779 been including the Small Business 731 00:32:55,779 --> 00:32:57,890 Administration . We've been including 732 00:32:57,890 --> 00:33:00,050 manufacturers associations . So we 733 00:33:00,050 --> 00:33:02,520 really use them to echo and amplify all 734 00:33:02,520 --> 00:33:04,798 the information that we're sending out . 735 00:33:04,798 --> 00:33:07,300 And we help them connect industry with 736 00:33:07,300 --> 00:33:09,133 us so that we can have listening 737 00:33:09,133 --> 00:33:11,690 sessions . So we understand what 738 00:33:11,700 --> 00:33:15,610 impacts are . So again , we have 739 00:33:15,610 --> 00:33:18,080 had a great partnership with Congress , 740 00:33:18,080 --> 00:33:21,110 asking us what we need at this point , 741 00:33:21,110 --> 00:33:23,443 we have most of the authorities we need . 742 00:33:23,443 --> 00:33:25,610 We're just working hard within our own 743 00:33:25,610 --> 00:33:28,250 authorities to implement those and come 744 00:33:28,250 --> 00:33:30,810 up with policies that again keep cash 745 00:33:30,810 --> 00:33:32,640 flowing and keep the speed of 746 00:33:32,650 --> 00:33:35,150 acquisition up . We're also working 747 00:33:35,150 --> 00:33:37,261 hard with the service is to make sure 748 00:33:37,261 --> 00:33:39,372 we put as much on contract as quickly 749 00:33:39,372 --> 00:33:42,430 as possible . We are hoping to see some 750 00:33:42,440 --> 00:33:46,130 incremental funds in care Act to both 751 00:33:46,130 --> 00:33:48,090 For Defense Production Act . Title 752 00:33:48,090 --> 00:33:50,300 three for both the defense industrial 753 00:33:50,300 --> 00:33:53,110 base as well as medical resource is as 754 00:33:53,110 --> 00:33:55,110 well as some funding to make up for 755 00:33:55,110 --> 00:33:57,590 inefficiencies in some of our programs . 756 00:33:59,610 --> 00:34:02,790 Doug , are you there ? I am their 757 00:34:03,520 --> 00:34:07,310 here island . Thanks again 758 00:34:07,320 --> 00:34:09,650 for doing this and everyone stays safe . 759 00:34:10,060 --> 00:34:13,510 I just don't stimulus related funding . 760 00:34:14,060 --> 00:34:17,420 Congress earmarks 17 billion payment 761 00:34:17,420 --> 00:34:20,890 Protection Plan Money linked to 762 00:34:20,940 --> 00:34:24,230 companies tight in national security . 763 00:34:24,450 --> 00:34:26,228 Now , while it's it's up to the 764 00:34:26,228 --> 00:34:28,228 companies to apply What what is the 765 00:34:28,228 --> 00:34:30,910 Pentagon goons role in your view and 766 00:34:30,920 --> 00:34:33,710 directing where these funds have these 767 00:34:33,720 --> 00:34:35,930 funds actually allocated to industry ? 768 00:34:36,300 --> 00:34:38,920 So are you referring to the 17 billion 769 00:34:38,920 --> 00:34:41,330 that Treasury has for national security ? 770 00:34:42,610 --> 00:34:45,810 Okay , so it's great Treasury actually 771 00:34:45,820 --> 00:34:49,360 reached out to us . We've worked back 772 00:34:49,360 --> 00:34:51,980 and forth at the undersecretary level , 773 00:34:52,070 --> 00:34:55,150 putting together guidance for how we 774 00:34:55,150 --> 00:34:57,330 think they should sort through the 775 00:34:57,330 --> 00:35:01,270 funds . We actually have , um , ranked 776 00:35:01,280 --> 00:35:04,100 different sectors as well . So we set 777 00:35:04,100 --> 00:35:05,933 the criteria up . We're just now 778 00:35:05,933 --> 00:35:07,878 beginning to work with them on the 779 00:35:07,878 --> 00:35:09,933 choices . But that has been a very , 780 00:35:09,933 --> 00:35:12,220 very good inter agency process because 781 00:35:12,230 --> 00:35:15,410 obviously we have a certain number of 782 00:35:15,410 --> 00:35:17,243 things we can do for the defense 783 00:35:17,243 --> 00:35:19,720 industrial base within the Department 784 00:35:19,730 --> 00:35:21,897 of Defense . However , we want to make 785 00:35:21,897 --> 00:35:24,290 sure we vector cos if they're small to 786 00:35:24,290 --> 00:35:26,480 the Small Business Administration or 787 00:35:26,480 --> 00:35:29,390 whatever size company to Treasury , so 788 00:35:29,390 --> 00:35:31,890 that they could take advantage of all 789 00:35:31,890 --> 00:35:34,470 the different relief efforts that the 790 00:35:34,470 --> 00:35:37,750 government has . Can you give us any 791 00:35:37,750 --> 00:35:40,600 guide on the rank in the ranking 792 00:35:40,670 --> 00:35:42,503 process , either ? The number of 793 00:35:42,503 --> 00:35:44,337 sectors are indeed the number of 794 00:35:44,337 --> 00:35:46,503 companies . Well , I think they're two 795 00:35:46,503 --> 00:35:48,590 ways to look at it . Obviously , our 796 00:35:48,590 --> 00:35:51,740 first priority in D . O . D relative 797 00:35:51,750 --> 00:35:54,360 acquisition is the nuclear 798 00:35:54,450 --> 00:35:56,506 modernization process of the nuclear 799 00:35:56,506 --> 00:35:58,530 triad . We look at Missile Defense 800 00:35:58,530 --> 00:36:00,710 Agency , we look at those critical 801 00:36:00,710 --> 00:36:04,280 capabilities we have . Then , as I 802 00:36:04,280 --> 00:36:06,720 said , we're looking where the greatest 803 00:36:06,720 --> 00:36:09,050 pain points are . And again , it's 804 00:36:09,050 --> 00:36:11,850 really aviation , shipbuilding and 805 00:36:11,850 --> 00:36:14,820 small space launch . That's really 806 00:36:14,820 --> 00:36:17,820 useful . Thank you . Okay . So , uh , 807 00:36:17,830 --> 00:36:20,163 unfortunately , we have run out of time . 808 00:36:20,490 --> 00:36:22,601 But , ma'am , do you have any closing 809 00:36:22,601 --> 00:36:24,657 remarks ? Just want to thank you all 810 00:36:24,657 --> 00:36:26,712 for coming out to try to get some of 811 00:36:26,712 --> 00:36:28,934 the facts . I will tell you that we are 812 00:36:28,934 --> 00:36:30,934 just beginning to really pick up mo 813 00:36:30,934 --> 00:36:33,770 mentum within the inner agency and are 814 00:36:33,770 --> 00:36:36,520 excited about what we can bring to bear 815 00:36:36,520 --> 00:36:39,680 from d o d toe help the nation in terms 816 00:36:39,680 --> 00:36:41,780 of fighting Cove it and all getting 817 00:36:41,780 --> 00:36:43,891 well again . So thank you very much . 818 00:36:44,260 --> 00:36:44,850 Stay safe .